ARM, a powerful chip design outfit, is bullish on the coming effects of Windows 8 supporting its products. Microsoft is building Windows 8 to permit the use of ARM technology, which has prompted ARM to speculate that the move will allow for the operating system to find new places to thrive.

In a quote supplied to BusinessWeek, ARM’s President, Tudor Brown, said that the move by Microsoft creates new opportunities: “This opens up a much bigger market, and makes a valid and viable operating system for [electronics in the living room and the car].”

Microsoft is set to demo the Windows 8 tablet user interface this week, a move that will set the stage for the next several official Windows 8 press cycles.

However, the report also gives a small hint as to the potential release timing of Windows 8: “ARM may start generating royalties from chips using its technology in Windows-based laptops and tablets as early as next year, President Tudor Brown said.”

ARM can only earn royalties once Windows 8 makes it to market, implying that the company is expecting the next-generation edition of Windows to land no sooner than next year, and, given the language, not much later. This aligns with the repeatedly rumored late 2012 release date for Windows that has been bouncing around the media for months.

This is an evolutionary step by Microsoft to open the future of Windows to new and more diverse form factors and hardware partners. While this announcement is perhaps not as sexy as what Ballmer should flash on stage later today [at CES 2011], it is none the less a very important move by Microsoft.

Windows 8 is set to contain multiple versions for ARM processors, including E editions. As always, more as it comes.